For Immediate Release
LANDING, N.J. -
Atlantic City Electric has reached an agreement with the labor union that
represent its bargaining unit employees to extend the current collective
bargaining agreements by three years.
The contract with IBEW Local 210,
which represents employees in the Atlantic City Electric region, will now
expire in 2018. IBEW Local 1238 represents employees who work in New Jersey at
Carneys Point and handle calls of ACE customers. That collective bargaining
agreement also has been extended and will now expire in 2020.
Atlantic City Electric's parent
company, Washington, D.C.-based Pepco Holdings Inc., on April 30 announced a
merger with Chicago-based Exelon Corp. That transaction is expected to be
completed by the second or third quarter of 2015. Exelon has committed to no
net involuntary merger-related job losses of PHI utility employees for at least
two years after the merger and to honor all collective bargaining agreements.
Atlantic City Electric has also
committed to hire a substantial number of bargaining unit employees after the
merger is completed.
"We appreciate the leadership from our
union partners to reach agreements that provide certainty to the workforce and
will allow us to focus on the process of the Exelon-PHI transaction and our
business of providing reliable service to our customers," said Vince
Maione, Atlantic City Electric region president.
Charlie Hill, business manager of
Local 210, said, "We appreciate the commitment to and investment in our
employees now and after the merger."
Steve Newberry, business manager of
Local 1238, said, "The contract extensions give assurance to the bargaining
unit employees that they are valued. We are happy to extend our partnership and
support the merger given the demonstration of commitment to our employees."
For additional information about
Atlantic City Electric, visit www.atlanticcityelectric.com. Follow us on
Facebook at www.facebook.com/atlanticcityelectric and on Twitter at
www.twitter.com/acelecconnect. Our mobile app is available at www.atlanticcityelectric.com/mobileapp.
for the historical information contained herein, certain of the matters
discussed in this communication constitute "forward-looking statements" within
the meaning of the Securities Act of 1933 and the Securities Exchange Act of
1934, both as amended by the Private Securities Litigation Reform Act of 1995.
Words such as "may," "might," "will," "should," "could," "anticipate,"
"estimate," "expect," "predict," "project," "future", "potential," "intend,"
"seek to," "plan," "assume," "believe," "target," "forecast," "goal,"
"objective," "continue" or the negative of such terms or other variations
thereof and words and terms of similar substance used in connection with any
discussion of future plans, actions, or events identify forward-looking
statements. These forward-looking statements include, but are not limited to,
statements regarding benefits of the proposed merger, integration plans and
expected synergies, the expected timing of completion of the transaction,
anticipated future financial and operating performance and results, including
estimates for growth. These statements are based on the current expectations of
management of Pepco Holdings, Inc. (PHI) and its utility subsidiaries. There
are a number of risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements included in this
communication. For example, (1) PHI may be unable to obtain shareholder
approval required for the merger; (2) PHI or Exelon may be unable to obtain
regulatory approvals required for the merger, or required regulatory approvals
may delay the merger or cause the companies to abandon the merger; (3)
conditions to the closing of the merger may not be satisfied; (4) an
unsolicited offer of another company to acquire assets or capital stock of PHI
could interfere with the merger; (5) problems may arise in successfully
integrating the businesses of the companies, which may result in the combined
company not operating as effectively and efficiently as expected; (6) the
combined company may be unable to achieve cost-cutting synergies or it may take
longer than expected to achieve those synergies; (7) the merger may involve
unexpected costs, unexpected liabilities or unexpected delays, or the effects
of purchase accounting may be different from the companies' expectations; (8)
the credit ratings of the combined company or its subsidiaries may be different
from what the companies expect; (9) the businesses of PHI and its utility
subsidiaries may suffer as a result of uncertainty surrounding the merger; (10)
PHI and its utility subsidiaries may not realize the values expected to be
obtained for properties expected or required to be sold; (11) the industry may
be subject to future regulatory or legislative actions that could adversely
affect PHI and its utility subsidiaries; and (12) PHI and its utility
subsidiaries may be adversely affected by other economic, business, and/or
competitive factors. Other unknown or unpredictable factors could also have
material adverse effects on future results, performance or achievements of the
combined company. Therefore, forward-looking statements are not guarantees or
assurances of future performance, and actual results could differ materially
from those indicated by the forward-looking statements. Discussions of some of
these other important factors and assumptions are contained in PHI's filings
with the Securities and Exchange Commission (SEC), and available at the SEC's
website at www.sec.gov, including PHI's 2013 Annual Report on Form 10-K in (a)
ITEM 1A. Risk Factors, (b) ITEM 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations and (c) ITEM 8. Financial
Statements and Supplementary Data, and PHI's Quarterly Report on Form 10-Q for
the quarter ended March 31, 2014 in (x) PART I, ITEM 1. Financial Statements,
(y) PART I, ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations and (z) PART II, ITEM 1A. Risk Factors. These risks
as well as other risks associated with the proposed merger will be more fully
discussed in the proxy statement that PHI intends to file with the SEC and mail
to its stockholders in connection with the proposed merger.
In light of these risks, uncertainties, assumptions and factors, the
forward-looking events discussed in this communication may not occur. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this communication. PHI does not undertake
any obligation to publicly release any revision to its forward-looking
statements to reflect events or circumstances after the date of this
communication. New factors emerge from time to time, and it is not possible for
PHI to predict all such factors. Furthermore, it may not be possible to assess
the impact of any such factor on PHI's or its utility subsidiaries' businesses
(either individually or collectively) or the extent to which any factor, or
combination of factors, may cause results to differ materially from those
contained in any forward-looking statement. Any specific factors that may be
provided should not be construed as exhaustive.
communication does not constitute a solicitation of any vote or approval. PHI
intends to file with the SEC and mail to its stockholders a proxy statement in
connection with the proposed merger transaction. PHI URGES INVESTORS AND
SECURITY HOLDERS TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS
WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
about Exelon, PHI and the proposed merger. Investors and security holders will
be able to obtain these materials (when they are available) and other documents
filed with the SEC free of charge at the SEC's website, www.sec.gov. In
addition, a copy of PHI's proxy statement (when it becomes available) may be
obtained free of charge from Pepco Holdings, Inc., Corporate Secretary, 701
Ninth Street, N.W., Room 1300, Washington, D.C. 20068. Investors and security
holders may also read and copy any reports, statements and other information
filed by PHI with the SEC, at the SEC public reference room at 100 F Street,
N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit
the SEC's website for further information on its public reference room.
PHI, and their respective directors, executive officers and certain other
members of management and employees may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction. Information
regarding Exelon's directors and executive officers is available in its proxy
statement filed with the SEC on April 2, 2014 in connection with its 2014
annual meeting of stockholders, and information regarding PHI's directors and
executive officers is available in its proxy statement filed with the SEC on
March 25, 2014 in connection with its 2014 annual meeting of stockholders.
Other information regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security holdings or
otherwise, will be contained in the proxy statement and other relevant materials
to be filed with the SEC when they become available.